Asset-based buy-in set to break new ground

The insurer will take ownership of property, owned by an unnamed sponsoring company, and pay a portion of the scheme benefits with rent from a sale and leaseback arrangement.

The deal is expected to be completed in the next two months, although Pension Corporation was unable to comment.

But consultants have claimed the use of physical assets in buy-ins will bring new schemes into the market.

Hymans Robertson derisking specialist James Mullins welcomed the “new and innovative” move.

Lane Clark & Peacock partner Charlie Finch said: “I’ve heard discussions about this sort of thing, but never seen it happen.”

Pension Corporation has also concluded a £52m buy-in with the Alitalia Italian Airlines Pension and Assurance Scheme, with advice from Barnet Waddingham.

Mitul Magudia, a spokesman for the insurer, said: “We’re pleased to have developed the right insurance solution for this situation.”